EXHIBIT 1

EASTBORO MACHINE TOOLS CORPORATION

Consolidated Income Statements ( in thousand dollars, except per share data)

For the Years Ended Dece

1998

Net sales $ 858,263

Cost of sales 540,747
Gross profit 317,516

Research & development 77,678

Selling, general, & administrative 229,971
Restructuring costs 65,448
Operating profit (loss) (55,581)

Other income (expense) (4,500)

Income (loss) before taxes (60,081)
Income taxes (benefit) 1,241

Net income (loss) ($61,322)

Earnings (loss) per share ($3.25)

Dividends per share $0.77
For the Years Ended December 31,
Projected
1999 2000 2001

$ 815,979 $ 756,638 $ 870,000

501,458 498,879 549,750
314,522 257,759 320,250

70,545 75,417 77,250

223,634 231,008 211,500
0 89,411 0
20,343 (138,077) 31,500

1,065 (3,458) (4,200)

21,408 (141,534) 27,300
8,415 (750) 9,282

$12,993 ($140,784) $18,018

$0.69 ($7.57) $0.98

$0.25 $0.25 $0.39
 EXHIBIT 2
EASTBORO MACHINE TOOLS CORPORATION
Consolidated Balance Sheets ( in thousand dollars)

December 31st
Projected
1999 2000 2001

Cash & equivalents $ 13,917 $ 22,230 $ 25,665

Accounts receivable 208,541 187,235 217,510
Inventories 230,342 203,888 217,221
Prepaid expenses 14,259 13,016 15,011
Other 22,184 20,714 21,000
Total Current Assets 489,242 447,082 496,407

Property, plant, & equipment 327,603 358,841 410,988

Less depreciation 167,414 183,486 205,530
Net property, plant, & equipment 160,190 175,355 205,458
Intangible assets 9,429 2,099 1,515
Other assets 15,723 17,688 17,969

Total assets $674,583 $642,223 $721,350

Bank loans $ 34,196 71,345 74,981

Accounts payable 36,449 34,239 37,527
Current portion of long-term debt 300 150 1,515
Accruals and other 129,374 161,633 183,014
Total Current Liabilities 200,318 267,367 297,037

Deferred taxes 16,986 13,769 16,526

Long-term debt 9,000 8,775 30,021
Deferred pension costs 44,790 64,329 70,134
Other liabilities 2,318 5,444 7,505
Total Liabilities 273,411 359,683 421,224

Common stock, $1 par value 18,855 18,855 18,835

Capital in excess of par 107,874 107,907 107,889
Cumulative translation adjustment (6,566) 20,208 26,990
Retained earnings 291,498 146,065 156,875
Less treasury stock at cost:
1986--256,151, 1987--255,506 (10,490) (10,494) (10,464)
Total shareholders' equity 401,172 282,541 300,126
Total Liabilities & Equity $674,583 $642,223 $721,350
 EXHIBIT 5
EASTBORO MACHINE TOOLS CORPORATION
Per Share Financial & Stock Data*

Sales / -----Stock Price----- Avg. Payout

Year Share EPS~ DPS~ CPS~ High Low Avg. P/E Ratio

1985 $14.52 ₹ 0.45 $0.18 $0.97 $20.37 $9.69 $14.48 32.4 40%
1986 16.00 0.74 0.22 1.29 21.11 10.18 14.85 20.2 30%
1987 22.25 0.89 0.27 1.43 21.23 8.20 13.50 15.1 30%
1988 25.64 1.59 0.31 2.05 18.50 10.18 13.35 8.4 19%
1989 27.19 2.29 0.40 2.83 22.48 12.17 18.36 8.0 17%
1990 30.06 2.59 0.57 3.25 23.84 18.01 21.00 8.1 22%
1991 31.66 2.61 0.72 3.34 26.70 18.25 22.73 8.7 27%
1992 37.71 2.69 0.81 3.60 29.43 19.50 24.23 9.0 30%
1993 40.69 2.56 0.86 3.62 39.74 20.12 29.48 11.5 34%
1994 48.23 3.58 0.92 4.81 40.98 27.32 33.98 9.5 26%
1995 43.59 2.79 1.03 4.25 38.74 21.36 31.82 11.4 37%
1996 42.87 0.65 1.03 2.23 47.19 29.55 36.81 57.0 160%
1997 41.48 0.35 1.03 2.00 40.23 26.82 31.26 89.9 297%
1998 46.01 -3.29 0.77 2.86 30.75 22.13 26.45 NMF NMF
1999 43.88 0.70 0.25 1.99 71.88 50.74 61.33 88.2 35%
2000 40.68 -7.57 0.25 -0.97 39.88 18.38 29.15 NMF NMF
average $26.42 $26.96

*Adjusted for 3-for-2 stock split in January 1991 and 50 percent stock dividend in June 1993.
~ EPS: Earnings Per Share;CPS: Cash earnings per Share; DPS: Dividend per Share
 Shares
Avg. Outstanding
Yield (Millions)

1.2% 15.49
1.5 15.58
2.0 16.04
2.3 17.87
2.2 18.08
2.7 18.39
3.1 18.76
3.4 18.76
2.9 18.78
2.7 18.88
3.2 18.66
2.8 18.66
3.3 18.66
2.9 18.85
0.4 18.85
0.9 18.60
 EXHIBIT 8
EASTBORO MACHINE TOOLS CORPORAT
Projected Sources and Uses Statement ( in million

Assumptions: 2001 2002

1. Sales Growth Rate: 15% 15%

2. Net Income as % of Sales 2.1% 4.0%
3. Dividend Payout Ratio 58.6% 9.7%

Beginning debt 80.27

Beginning equity 282.54
shares outstanding 18.6
current market price of share 22.15
Debt/equity 40%
cost of debt 8%
Tax rate 0.34
Projections
2000 2001 2002

Sales $ 870.1 $ 1,000.7

Sources:
Net income 18 40
Depreciation 23 26
41 66
Uses:
Capital expend. 44 50
Change in Working capital 20 22
63 73

Excess cash/(Borrowing needs) (23) (7)

Dividend 11 4

After dividend
Excess cash/(Borrowing needs) (33.3) (11.2)
Cumulative debt (33.3) (44.5)
Interest expenses -1.76 -2.35
Total outstanding debt 115.34 128.85
Total Outstanding equity 288.27 322.06
Debt/Equity 40.01% 40.01%
Wealth being given to shareholders

EPS 0.88 2.03

EPS*P/E= Implied price
P/E average of CAD/CAM 38.58 0.75
P/E average of electrical 18.86 0.25
weighted average P/E of Eastboro 33.65
Implied stock price 29.56103 68.16
Dividend income=Dividend per share 0.57 0.21

An investor has bought a share in 2000 at $22.15 -22.15 0.57 0.21

NPV ₹ 90.12
IRR 46%
 EXHIBIT 8
MACHINE TOOLS CORPORATION
s and Uses Statement ( in million dollars)

2003 2004 2005 2006 2007

15% 15% 15% 15% 15%

5.0% 5.5% 6.0% 5.6% 7.95%
20.0% 20.0% 20.0% 20.0% 20.0%

Total
2003 2004 2005 2006 2007 2001-07

$ 1,150.75 $ 1,323.36 $ 1,521.87 $ 1,750.15 $ 2,012.67 $ 9,629.59

58 73 91 98 160 538
30 35 41 47 53 252
88 107 132 145 213 790

58 66 68 79 91 456
26 30 34 39 44 214
83 96 102 117 135 670

4 12 29 27 78 120
Equity of 2001
12 15 18 20 32 110 of 2000+Net i
of 2001-Divid
2001-Interest
2001
(7.3) (3.0) 11.1 7.6 45.6 10
(51.8) (54.8) (43.7) (36.1) 9.6
-2.73 -2.89 -2.31 -1.90 0.51
138.88 144.80 135.99 130.26 84.12
365.35 420.69 491.43 567.93 696.45
38.01% 34.42% 27.67% 22.94% 12.08%

2.95 3.76 4.79 5.17 8.63

99.15 126.44 161.02 173.87 290.39
0.62 0.78 0.98 1.05 1.72

0.62 0.78 0.98 1.05 292.11

Equity of 2001=Equity
of 2000+Net income
of 2001-Dividend of
2001-Interest exp of
2001